How Much Does an LLC Cost in Pennsylvania? (Filing Fees 2024)
Are you thinking about starting an LLC in Pennsylvania? The filing fee is $125, and the annual report fee is just $7.
But is that not all you need to budget?
In addition to the initial filing fees, you’ll likely face additional expenses like hiring a registered agent, securing a unique LLC name, or obtaining necessary licenses and permits.
It’s easy to assume that forming an LLC is just about that initial fee, but extras like a “Doing Business As” (DBA) name and industry-specific licenses can quickly add up.
Curious about what other costs to expect when setting up your Pennsylvania LLC?
How Much Does an LLC Cost in Pennsylvania?
Starting an LLC in Pennsylvania involves a few costs, some mandatory and others optional, depending on your needs.
Here’s a breakdown:
- Filing Fee for the Certificate of Organization: The initial cost to officially form your LLC in Pennsylvania is $125. This covers filing the Certificate of Organization with the Department of State.
- Annual Report Fee: Pennsylvania has an affordable annual report fee of $7. This is due every year and helps keep your LLC in good standing.
- Registered Agent Service: You must have a registered agent to receive legal documents on your LLC’s behalf. You can either be your registered agent or hire a service, which typically costs between $100 and $300 annually.
- DBA (“Doing Business As”) Name: If you plan to operate your business under a different name than your LLC, you must register a DBA. The cost for this is $70.
- LLC Name Reservation: If you want to reserve your desired LLC name before officially filing, you can do so for $70. This holds the name for up to 120 days.
- Certificate of Subsistence: Sometimes, you may need to prove your LLC is in good standing with the state. Obtaining a Certificate of Subsistence costs $40.
All these costs add up depending on your specific needs. While the base formation cost is reasonable, additional services like registered agent assistance, name reservation, or DBA registration can affect your overall budget.
LLC Costs in Pennsylvania (Formation Fees)
Here is a table summarizing the main fees you may encounter for starting an LLC in Pennsylvania:
| Pennsylvania LLC Requirements | Cost |
|---|---|
| LLC Business Name Cost | $0 |
| Articles of Organization | $125 |
| Operating Agreement (optional) | $0 (with Northwest) |
| EIN Number | $0 (free from IRS) |
| Annual Report | $7/annually |
| LLC Name Reservation Fee (optional) | $70 |
| Certificate of Subsistence (optional) | $40 |
| Foreign LLC Registration (optional) | $250 |
| Fictitious Name (DBA) (optional) | $70 |
| Taxes | Varies |
| Pennsylvania State Business License | Varies |
| Registered Agent Services (optional) | $0-$125 (Northwest) |
| LLC Formation Services (optional) | $39 |
| Total LLC Costs in Pennsylvania | $132 – $726 |
Pennsylvania LLC filing fees table
Total LLC costs in Pennsylvania range from $132 to $726. If you do everything yourself and skip the optional extras, you might only spend around $132. However, if you decide to pay for additional services and requirements, your costs could go up to between $600 and $726.
The first mandatory expense is the $125 fee for filing the Articles of Organization, which is essential for officially forming your LLC. Additionally, you’ll need to budget for the annual report, which costs $7 each year.
Now, let’s discuss the additional costs.
Obtaining an Employer Identification Number (EIN) is free from the IRS, and an LLC business name costs $0. An Operating Agreement is recommended but can be obtained at no cost using services like Northwest.
If you want to reserve your LLC name, that will cost you $70. You may also want to obtain a Certificate of Subsistence for $40, and if you plan to register a foreign LLC in Pennsylvania, that incurs a fee of $250. If you wish to operate under a different name (DBA), you must pay an additional $70.
Regarding registered agent services, you can either act as your agent at no cost or hire a professional service, which typically ranges from $100 to $300, depending on the provider.
Suppose you choose to use an LLC formation service, that typically costs around $39. Remember that taxes and the Pennsylvania State Business License can vary based on business activities.
Pennsylvania LLC Business Name Cost ($0)
When forming your LLC in Pennsylvania, you must consider your business name. The good news is that registering your LLC name can cost you nothing.
Choosing a name for your LLC is an important step. Your name must be unique and not too similar to existing businesses. You should check the Pennsylvania Department of State’s website to see if your chosen name is available.
If your desired name is available, you don’t have to pay a fee to reserve it. This differs from some states, which require you to pay to hold a name for a period.
Remember that it’s wise to make sure your business name complies with Pennsylvania naming rules. For example, it should include “Limited Liability Company” or abbreviations like “LLC” or “L.L.C.”
Pennsylvania Articles of Organization ($125)
To establish an LLC in Pennsylvania, you must file a document known as the Articles of Organization. This document is essential for forming your LLC and is submitted to the Pennsylvania Department of State.
The filing fee for the Articles of Organization is $125. This is a one-time payment and covers the cost of processing your application.
The Pennsylvania LLC processing time depends on the filing method. If you file online, the process takes 5-7 days, while if you file by mail, expect LLC approval in 2 weeks.
LLC Operating Agreement Cost in Pennsylvania ($0 with Northwest)
Creating an LLC operating agreement in Pennsylvania is important for your business. This document outlines how your LLC will function and the responsibilities of its members.
Northwest Registered Agent offers an operating agreement for $0. This is a significant advantage if you want to keep costs low while ensuring your LLC has the necessary documents.
If you prefer a DIY approach, make sure to cover essential elements such as:
- Member roles: Define each member’s duties and contributions.
- Profit distribution: Explain how profits and losses will be shared.
- Decision-making: Outline how decisions will be made within the LLC.
Having a clear and comprehensive operating agreement can help prevent misunderstandings and conflicts down the line. Using Northwest’s services can provide peace of mind, knowing you have a professional document at no cost. This lets you focus on growing your business instead of worrying about paperwork.
You can easily find Operating Agreement templates online. Many websites offer free downloads of these templates. However, it’s important to carefully review and tailor the template to meet your business’s unique needs and comply with any legal requirements.
Pennsylvania Registered Agent Fee ($0-$300/year)
In Pennsylvania, you have options when it comes to your registered agent. If you choose to act as your own registered agent, there is no fee. All you need to do is provide your name and address.
If you prefer a professional Pennsylvania registered agent service, expect to pay between $100 and $300 annually. These services handle legal documents for you and protect your privacy.
For example:
- LegalZoom charges about $249 annually for their services
- ZenBusiness charges about $199 annually for theirs
- Northwest Registered Agent provides a deal where services are free for the first year if you hire them to form your LLC. After that, their fee drops to $125 each year.
This pricing structure helps you choose what best suits your needs. Acting as your registered agent is the most cost-effective option if you want to save money.
EIN Cost in Pennsylvania ($0 from the IRS website)
When starting an LLC in Pennsylvania, you may need an Employer Identification Number (EIN). The good news is that obtaining an EIN is free through the IRS.
You can apply for your EIN online. The process is straightforward: Visit the IRS website, fill out Form SS-4, and submit it.
Having an EIN is important. It helps you separate your business finances from personal ones. You’ll need it for tax purposes and when opening a bank account for your LLC.
When applying, make sure you have all the necessary information ready. This includes identifying information about your business and its members.
If you have any questions while applying, you can call the IRS. They assist those who need help. Just ensure the person calling is authorized to receive the EIN.
Pennsylvania Annual Report Fee ($7 every year, beginning in 2025)
Starting in 2025, all Limited Liability Companies (LLCs) in Pennsylvania must file an annual report. This new requirement comes from a law signed in 2022.
The annual report fee is $7. As long as your LLC is active, you will pay this fee annually. This is a small cost to keep your business compliant with state regulations.
Reports must be submitted to the Pennsylvania Department of State by September 30th each year. Remembering this deadline is important to avoid late fees or penalties.
Your first annual report will be due in September 2026. Ensure that your business information is current before filing. This includes your address, registered agent, and members of the LLC.
Remember that the previous rule requiring a decennial report is no longer effective. You’ll need to manage your annual report and fee more frequently now.
Fictitious Name/DBA Cost in Pennsylvania ($70)
To register a Fictitious Name, also known as a DBA (Doing Business As), you must budget for the filing fee in Pennsylvania. The cost to register a Fictitious Name is $70.
This fee is payable to the Pennsylvania Department of State. It’s important to note that it is non-refundable. This means you won’t get your money back if your application is accepted or rejected.
In addition to the filing fee, there may be other costs involved. You might need to publish a legal notice about your DBA, which can vary in price depending on your chosen publication.
LLC Name Reservation Fee in Pennsylvania ($70)
If you want to reserve a name for your LLC in Pennsylvania, you need to pay a fee of $70. This fee allows you to hold the name for up to 120 days. It’s a good step to ensure your desired name is available before you officially file your LLC documents.
You have two options to reserve your name. You can do it online using the PENN file portal. This method is quick and convenient. Alternatively, you can fill out the Name Reservation/Transfer of Reservation form (Form 15-208) and send it by mail to the Pennsylvania Department of State.
Pennsylvania Certificate of Subsistence ($40)
To keep your LLC active in Pennsylvania, you need a Certificate of Subsistence. This certificate shows that your business complies with state requirements. The fee to obtain this document is $40.
You can request the Certificate of Subsistence through the Pennsylvania Department of State.
Once your request is processed, you can expect to receive your Certificate in 7 to 10 days.
This document is important for several reasons. It proves that your LLC is in good standing and can be needed for various business transactions.
Pennsylvania Foreign LLC Registration Fee ($250)
If you plan to operate a foreign LLC in Pennsylvania, registering will cost you $250. This filing fee applies to every foreign business entity looking to enter the Pennsylvania market.
To complete the registration, you must file two key documents. These are the Foreign Registration Statement and a Docketing Statement. Both documents provide essential information about your business.
When you submit these forms, include your company’s name as it appears in its home state. You will also need to provide your business address and contact details.
Remember, this fee is just one part of your total costs. Depending on your business activities and other requirements, you may face additional expenses. Always double-check for updates or changes to fees to avoid surprises.
Pennsylvania State Business License Fee (varies)
In Pennsylvania, there is no general state-level business license. However, many businesses, including LLCs, must register for specific tax licenses.
If your LLC engages in retail sales, leasing, or rental of tangible personal property, you will need the Sales, Use, & Hotel Occupancy Tax license. This license is common among businesses selling goods or services directly to consumers.
The registration process for these tax licenses is straightforward. You can register online through the Department of Revenue’s MyPath Tax Hub. This makes it easy to obtain the necessary licenses without any additional fees.
It’s also essential to check with local municipalities. Some cities or counties may have their own licensing requirements. Therefore, be sure to research local laws and regulations.
Remember, while there may not be a general business license, staying compliant with tax licenses is crucial for your LLC’s success in Pennsylvania. Always ensure you have the right licenses for your specific type of business to avoid any issues.
Pennsylvania LLC Taxes (varies)
Pennsylvania LLC owners face various taxes that can affect annual costs. Since these taxes depend on several factors, the total can vary significantly from one business to another.
Here are some common taxes you may need to pay:
- Federal taxes: Income tax at the federal level.
- State income tax: You must file and pay state income tax based on your earnings.
- Local income tax: Your municipality may require additional local income taxes.
- Business taxes: Additional business taxes may apply depending on your business type.
- Self-employment taxes: If you are self-employed, you are responsible for these taxes.
- Sales and use tax includes local taxes, which may increase total rates to as much as 8%.
- Payroll tax: If you hire employees, you will owe payroll taxes.
- Property tax: You will pay property taxes if your LLC owns property.
Determining your specific tax obligations can be complex. It depends on your industry, location, and level of business activity. To ensure compliance, consult with a tax professional or financial advisor.
Your LLC’s specific tax obligations will depend on factors like your business’s industry, income level, and location. Consulting with a tax professional can help you better understand and plan for these costs.
Pennsylvania LLC reinstatement fee ($125)
If your Pennsylvania LLC becomes administratively dissolved, you must reinstate it to do business again. This reinstatement involves a fee of $125.
To begin the reinstatement process, you must file the appropriate forms with the state. Follow the guidelines provided by the Pennsylvania Department of State. Once your payment is processed, your LLC can return to good standing.
Remember that you cannot reinstate an LLC that was dissolved voluntarily. Instead, you must start a new business entity at its own cost.
Remember to stay on top of your annual report requirements. Filing the Pennsylvania LLC Annual Report costs $7 each year, and it is important to file this report by September 30 to keep your LLC active.
If you miss this deadline, it can lead to further complications and fees. Setting reminders so your business remains compliant with state regulations.
Pennsylvania LLC dissolution fee ($70)
When you decide to dissolve your LLC in Pennsylvania, you must pay a fee of $70, which is required to process the dissolution paperwork.
To start the process, you must fill out and submit the appropriate forms, such as the Articles of Dissolution. This document informs the state that your LLC is no longer in operation.
In addition to the dissolution fee, you must obtain a Tax Clearance Certificate. This certificate is essential and proves that your LLC has paid all taxes before it can officially close down.
Gather any other necessary documentation before proceeding. This preparation can help ensure a smooth and efficient dissolution process.
Remember to consider all requirements, as complying with state regulations is crucial. Taking these steps will support a straightforward exit from your business operations in Pennsylvania.
Pennsylvania LLC Change of Registered Agent fee ($5)
To change the registered agent for your LLC in Pennsylvania, you need to pay a fee of $5. This fee covers the filing of the change and the acceptance of the service of process by your new registered agent.
When you decide to make this change, you must complete a Statement of Change of Registered Agent form. You can file this with the Pennsylvania Secretary of State.
If you choose a new commercial registered office provider, they may handle the filing for you. They often charge an additional fee for their services, so check with them beforehand.
Keep in mind that every LLC is required to have a registered agent. This agent is the point of contact for official documents and legal papers, so the registered agent’s information must be updated.
What is the Cheapest Way to Start Pennsylvania LLC?
Starting an LLC in Pennsylvania can be done in a few different ways. You can file the necessary documents or hire a service to assist you.
The do-it-yourself method is the most cost-effective option. The fee for filing the Certificate of Organization directly with the Pennsylvania Department of State is $125. However, you can complete this online, saving time and money and avoiding extra service fees.
While convenient, using an online formation service usually involves additional costs. For example, some services charge around $39 plus state fees. While these services help with paperwork and ensure accuracy, they can add to the overall cost.
One affordable option is to check for local assistance programs. Sometimes, community organizations or local governments offer free or low-cost workshops that guide you through setting up an LLC.
The main downside of filing on your own is the potential for mistakes. If you miss a form or provide incorrect information, it can lead to delays or additional fees.
Filing the LLC yourself is the cheapest way in Pennsylvania. While hiring a service adds convenience, it costs more. Weigh your options to decide what works best for your needs and budget.
Should You Use an LLC Formation Service in Pennsylvania?
Using an LLC formation service in Pennsylvania can simplify the process for you. These services help with filing paperwork and ensure you meet all legal requirements. It saves you time and reduces stress.
One popular choice is Northwest Registered Agent. They offer several benefits, including:
- Privacy benefits: Your personal information is protected, and you can use their address for public records.
- Peace of mind: Knowing that professionals handle your formation can take a load off your shoulders.
- Stay compliant: They help you track important deadlines to avoid penalties.
You won’t have to worry about the headaches of paperwork. Formation services often handle everything from drafting the Articles of Organization to submitting them on your behalf. This means less chance for errors that could delay your business.
Additionally, you can gain free access to LLC formation experts and attorneys. This can be invaluable if you have questions or need guidance. They can help clarify any concerns about forming your LLC in Pennsylvania.
While using a service may incur extra costs, the benefits often outweigh them. If you feel unsure about navigating the LLC formation process alone, a service might be a good option.
Frequently Asked Questions
How much does an LLC cost per year in Pennsylvania?
In Pennsylvania, the annual fee for maintaining your LLC is $7. This fee is due each year for the life of your LLC.
How long does it take for LLC approval in Pennsylvania?
The approval process for an LLC in Pennsylvania takes 5-7 days if you file online, while if you file by mail, expect LLC approval in 2 weeks.
How much does an operating agreement cost in Pennsylvania?
While Pennsylvania does not require an LLC to have an operating agreement, creating one can help outline the management structure and business operations. The cost will vary based on whether you write it yourself or hire a professional.
How to start an LLC in Pennsylvania?
To start an LLC in Pennsylvania, you must file a Certificate of Organization and pay the $125 filing fee. You can submit your application online or by mail through the Pennsylvania Department of State.
How much does it cost to dissolve an LLC in Pennsylvania?
The cost to dissolve an LLC in Pennsylvania is $70. This fee is for filing the Certificate of Dissolution with the Pennsylvania Department of State. However, before officially dissolving your LLC, you must ensure that all taxes are paid, business licenses are canceled, and any remaining assets are distributed.
How much does it cost to reinstate an LLC in Pennsylvania?
The cost to reinstate an LLC in Pennsylvania is $125. This fee covers filing the Certificate of Reinstatement with the Pennsylvania Department of State.
Is Pennsylvania LLC worth it?
Forming an LLC in Pennsylvania can protect your assets and provide tax benefits. Depending on your business type and goals, it can be a good option.
Do I need a Pennsylvania address for an LLC?
Yes, you must provide a physical address in Pennsylvania for your LLC. This address will be used for official communications and cannot be a PO Box.
Do I need a business license if I have an LLC in Pennsylvania?
Yes, most businesses in Pennsylvania need a business license. The requirements can vary by city or county, so check local regulations.
Do I need to hire an attorney to form an LLC in Pennsylvania?
You do not need to hire an attorney to form an LLC in Pennsylvania, but consulting one can help you navigate the process and ensure compliance with all legal requirements.
Should I hire an LLC formation service in Pennsylvania?
Hiring a formation service can save you time and guide you through filing. This option may be beneficial if you are unsure about the steps involved.
Are there penalties for paying my fees late in Pennsylvania?
If you fail to pay your annual fees on time, you may face penalties, and your LLC could lose its good standing. Late fees can accumulate, increasing your overall expenses.
What happens if I do not file my Pennsylvania LLC annual report?
If you do not file your annual report, your LLC may be administratively dissolved. This means you must go through the reinstatement process to regain good standing.
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